Make Your Credit Cards Work for You

I once watched noted lawyer and economist Ben Stein on a television program. I remember nothing about that program except that he pulled out his wallet and with a tossing motion, out came about a hundred credit cards, accordion-style, in a plastic protector. I was impressed. I mean, I had a dozen cards, but, nearly a hundred? When he did so, he told the host that the credit card companies consider him to be a 'deadbeat'. I couldn't believe my ears. Here was a man who was an actor, writer, lecturer, and most of all, money maker saying he was considered a deadbeat. He went on to explain why. It seems that Mr. Stein not only uses each credit card very judiciously, but each is used only for specific items or for specific purchases. Where and how they are used is dependent upon the 'perks' being given by each card issuer.

Take Their Money
I currently have about eight cards in my wallet which I carry on a regular basis. My Costco branded American Express always gives me cash back on all purchases. I receive 3% for all gasoline and restaurant charges. I get 2% on hotels, motels and other travel, and one percent on all other purchases. With gasoline currently selling for around $3.00 a gallon; that equates to about 15 cents per gallon or about $3.00 savings on every 20 gallon fill-up. This card also doubles the manufacturer's warranty (up to one additional year) on things such as televisions and other electronics.

My two Citi Platinum Select cards also give me cash back. In the last couple of years, the constant percentage has dropped from 5% to 3%, but I receive this on gasoline, groceries, and prescription drugs. Currently they have a three month promotion which gives me 5% cash back on restaurants, hotels, and car rentals.

The Discover Card I carry changes up quarterly on their 5% cash back. Currently it is on gasoline, hotels, and movies.

AT&T gives me the same thing all the time. Frankly, due to my cell phone, I don't always take advantage of it. I receive 30 minutes of free calling each month and two free calls to information.

My Bank of America issued Royal Caribbean card doesn't have cash back. It builds points for my next cruise. By putting monthly Netflix and other recurring charges on it, I almost have enough for a free companion fare.

With my AAA card, I also get gasoline perks and free travel insurance. I haven't used it this quarter due to the good promotions of the other companies.

Beware Of The Details
I found out the hard way that you have to read the fine print and pay attention to details. Discover's 5% cash back is only good on purchases of up to $400.00 during the quarter, meaning they're only going to give you an extra $20.00 back in the quarter. Citi has a limit of $300.00 in purchases, meaning $15.00 in extra cash back. Doesn't sound like much, but $20.00 per quarter times 4 quarters is $80.00 and up to another $60.00 from each Citi card, I'll take their money. By paying each in full monthly, I pay no interest!